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To: Jorj X Mckie who wrote (78887)	10/20/2002 2:50:11 PM
From: SirRealist	Read Replies (1) \| Respond to of 208838

Freddie, Fannie expect to increase loan limits-sources FRIDAY, OCTOBER 18, 2002 12:04 PM - Reuters U.S. Company News NEW YORK, Oct 18 (Reuters) - Freddie Mac (FRE) and Fannie Mae (FNM) , the largest sources of housing finance in the U.S., are expected to increase in January the size of the mortgage loans they can finance, mortgage market sources said on Friday, which may add additional fuel to the surging housing market. The housing purchase and refinancing boom has helped the anemic economy. The housing giants periodically raise the limit on the size of the loans they can buy, turning them into so-called conventional loans, which have lower borrowing costs. The new loan limit, which is expected to be announced in November, would go into effect in January, the mortgage market sources said. Fannie Mae declined to comment on the limit, but said mortgage lenders have been adjusting their loan sizes in anticipation of this move. Freddie Mac declined to comment. Sources in the mortgage market said the limit could be raised to as much $325,000 from $300,700. Loans above the current limit are called jumbo loans and carry borrowing costs much higher them conventional loans. Raising the limit will allow homeowners with loans that fall under the new cap to join the refinancing wave that has raced through the housing market this past year, driven by historically low interest rates. This could also spur home purchases by increasing the amount of money consumers can borrow at lower rates. © Reuters 2002. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world. ________________ A little housing mkt juice oughta keep it alive a little longer...